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SC Global gets boost from AVJ consolidation

Posted on 26 Feb 2010 | Comments Off

SC Global Developments saw a near eight-fold jump in fourth-quarter net profit to $33.2 million – from just $4.2 million a year ago – as it consolidated the results of new subsidiary AV Jennings Ltd (AVJ).

Group revenue for the quarter ended Dec 31, 2009, rose almost ten-fold to $274.5 million from $28 million in Q4 2008.

In December 2008, SC Global increased its stake in AVJ to 50.03 per cent and, as a result, AVJ became a subsidiary. The inclusion of revenue from AVJ pushed up the developer’s topline for Q4.

Turnover also included progressive revenue recognition of the group’s Singapore development projects – including The Marq on Paterson Hill, Hilltops and Martin No. 38 – based on progress of construction. In addition, revenue was also recognised from its development project in China, Kairong International Gardens in Shenyang.

Earnings per share for Q4 2009 rose to 8.36 cents from 1.07 cents a year ago.

For the full 2009 financial year, SC Global’s net profit rose by 28 per cent to $56.9 million from $44.5 million in 2008. This was mainly due to higher profit recognition from the group’s Singapore development projects and the return to profitability for AVJ.

Revenue for 2009 hit a record $804.7 million, a significant 524 per cent increase from $129.1 million in 2008. The group’s net debt to equity ratio fell to 2.18 times at end-2009 from 2.84 times at end-2008. It proposed a final dividend of 1.5 cents per ordinary share.

‘Despite the challenging conditions in 2009 brought by the global financial crisis, the group posted its highest year of revenue and net profit since its inception as a real estate developer in 2000,’ said chief executive Simon Cheong.

SC Global will continue to sell units in projects it has already launched over the year, Mr Cheong said. ‘We are very positive about the high-end market in Singapore given the forecasted growth of 4.5-6.5 per cent in the economy.’ SC Global, which holds a land bank of over 1.1 million square feet of developable gross floor area in the prime areas of Orchard Road and Sentosa Cove in Singapore, is well-positioned as the market continues to improve, Mr Cheong added.

Source : Business Times – 26 Feb 2010

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Posted in Developers

Tagged AV Jennings Ltd (AVJ), Hilltops, Martin No 38, SC Global, The Marq

In dollar terms, ‘09 home sales pale before record of ‘07

Posted on 30 Oct 2009 | Comments Off

Volumes may be as high, but units sold this year are smaller and less expensive

Numbers tell only half the story. While developers are heading towards the record number of private homes sold in 2007, CB Richard Ellis says that the total transaction value of primary market sales in 2009 so far – at about $11.2 billion – is only about half the $23 billion worth of new homes sold in the peak year of 2007.

The smaller value of total private homes sold by developers this year reflects the fact that mass-market homes have hogged the limelight this year, unlike 2007, when the spotlight was on the luxury market.

Median prices per unit transacted, both in absolute dollar as well as per square foot terms, have also been lower this year compared with 2007. With the focus on small-format units to move sales, the median size of units sold so far this year is also smaller than in 2007.

CBRE based its analysis on caveats data captured up to Oct 27 in Urban Redevelopment Authority’s Realis system.

This year, the strongest quarterly showing was in Q3, when developers sold about $5.8 billion worth of private homes, up from $1.36 billion in Q1 and $4.05 billion in Q2.

This pick-up has much to do with the stages of recovery in home buying. Continue reading →